Business
Capital City Bank Group, Inc. Reports First Quarter 2020 Results
TALLAHASSEE, Fla., April 23, 2020 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $4.3 million, or $0.25 per
About this update from Capital City Bank Group
[{"type":"text","content":"TALLAHASSEE, Fla., April 23, 2020 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $4.3 million, or $0.25 per diluted share for the first quarter of 2020 compared to net income of $8.6 million, or $0.51 per diluted share for the fourth quarter of 2019, and $6.4 million, or $0.38 per diluted share for the first quarter of 2019. \n Net income for the first quarter of 2020 included a $5.0 million provision for credit losses, which exceeded net loan charge-offs of $1.1 million. The higher provision reflected a build in reserves due to deteriorating economic conditions related to COVID-19. HIGHLIGHTS Diversified revenue and strong balance sheet buffered impact of COVID-19 and Fed interest rate actionsAverage loans (ex-held for sale) up 0.8% sequentially and 4.2% over 2019Loan loss provision of $5.0 million reflected reserve build for COVID-19 impactMarch 1st acquisition of a 51% membership interest in Brand Mortgage Group, LLC (now operated as Capital City Home Loans (“CCHL”)) – nominal net impact on earnings “After posting a solid 2019, the country now finds itself in a highly uncertain economic environment, but Capital City enters this cycle in a strong financial position,” said William G. Smith, Jr., Chairman, President and CEO. “A lot has transpired over the last three months. Along with many other banks, our team has been busy accepting and processing SBA Paycheck Protection Program loan applications and is glad to be in a position to assist our small business clients in this time of need. On March 1st we consummated our strategic alliance with Capital City Home Loans and I am excited to welcome our new partners in the mortgage banking business, which should triple our historical production levels. During the first quarter we adopted the new loan loss reserve accounting methodology referred to as “CECL” and booked a provision of $5.0 million primarily to address potential credit issues that may arise as a result of the COVID-19 pandemic. Compared to December 31, 2019, our reserve increased $7.2 million or 52%. While the first quarter brought forth many challenges, I believe our underlying fundamentals remain intact. On April 1st I am proud to share with you that we celebrated our 125th birthday. During our history we have weathered the Great Depression, two world wars and the more rec...